In today’s world, cryptocurrencies are becoming more popular by the day as the chosen form of currencies for customers all around the world. Reports indicate that almost 60% of the world’s leading companies are already using at least one form of currency for transactions in order to accommodate the rise in crypto usage. Therefore, integrating a crypto payment processor for business is a step many merchants are looking to take in order to take their businesses to the next level.
So, what is a crypto payment processor for business, how does it work, and what are the advantages of using one? Let’s dive deep into these topics with XAIGATE today.
What is crypto payment processor for business?
So, let’s first discuss: “What is a crypto payment processor for business?” A crypto payment processor is a blockchain-based software that acts as a bridge between merchants accepting crypto and customers paying them for goods and services. A crypto payment processor for business is, in other words, a payment gateway for digital assets (cryptocurrencies), similar to conventional fiat currencies payment processors and bank credit cards.
A crypto payment processor for business facilitates instant processing of digital payments between customers (senders) and merchants (receivers) in a safe, secure, and private manner. In some cases, a crypto payment processor also enables direct payment options from crypto wallets to other wallets as well as conversion from crypto to traditionally-used fiat currencies. A crypto payment processor is essential if a business aims to integrate crypto as one of its payment method seamlessly and swiftly.
Learn more about best crypto payment gateways for business: 5 TOP Cryptocurrency Payment Gateway for Business
Types of crypto payment processor for business
There are two types of payment processors: custodial and non-custodial. So what is the difference and which one should you choose as your processor of choice?
Custodial versus Non-custodial crypto payment processor for business
Custodial payment processors enable transactions through a wallet that keeps all your private keys, providing extra support an security for your assets. Meanwhile, non-custodial processors enable transactions through third-party wallets, allowing you to have control over your funds with keys that only you have access to. In other words, non-custodial payment processors do not touch your cryptocurrencies anywhere in the transaction process while custodial processors do for extra security and backup.
Comparison between custodial and non-custodial processors
Custodial processors pros and cons
Pros
- More convenient
- Less involvement and management needs from the users’ sides
- More reliable and secure as the processors provide extra layer of security and backup to your funds
Cons
- Less user autonomy allowed
- Less private
- Higher transaction fees as processors provide extra service
- Lower transaction speed
Non-custodial processors pros and cons
Pros
- More user autonomy allowed
- More private
- Lower transactions fees
- Faster transaction speed
Cons
- Less convenient and requires more management from the users’ sides
- Less secure as there is no extra layer of security
How does a crypto payment processor for business work?
Next, let’s dive deeper into how a crypto payment processor for business works!
- Customer chooses to use cryptocurrencies as their payment methods at checkout
- The crypto payment processor receives secure crypto information from a crypto payment gateway
Read more on crypto payment gateway: What is crypto payment gateway: A comprehensive guide
- The processor verifies the amount of crypto paid and security of the information
- It sends the information to the blockchain required to conduct the transaction
- It gets back an approval or denial from the blockchain network
- Crypto payment from the customer is processed and settled into the merchant’s wallet in the form of crypto or fiat currencies
While business owners may choose to directly integrate a crypto payment processor for business into their workflow instead of a crypto payment gateway, doing so may compromise the security that a gateway provides and exposes the businesses to frauds along with data breaches.
Differences between a crypto payment processor and crypto payment gateway
You probably have read a lot about crypto payment gateway as well, so you might be wondering what are the differences between a gateway and a processor. Generally speaking, the line between a gateway and a processor is really vague. A crypto payment processor simply processes crypto transactions between customers and merchants, while a crypto payment gateway provides a platform for merchants to accept crypto payment, notifies both customers and merchants about status of the payment, and provides security as well as support regarding crypto exchanges.
Both crypto payment processors and crypto payment gateways are essential to businesses wanting to accept crypto as one of their payment methods. While a crypto processor processes the payments and confirms security/legitimacy through a blockchain network, a crypto payment gateway is a bridge between customers and merchants in terms of platform, UX/UI, and extra support.
Read more on: Best 4 Cryptocurrency Payment Gateway for Website
Why do merchants need a crypto payment processor for business?
A crypto payment processor for business is undoubtedly important; however, it is important to note that it is not mandatory for crypto exchanges. It is perfectly fine for business owners to accept crypto payments directly into their crypto wallets. However, doing so poses several risks and inconveniences. Using a crypto payment processor for business has many advantages over managing one’s own crypto wallet. These advantages include:
- Zero chargebacks: Crypto payment processors do not permit chargeback or refund. This is useful for high-risk business transactions to prevent frauds.
- Privacy: Because of crypto’s decentralized nature, crypto payment processors offer more privacy and anonymity compared with traditional centralized payment systems.
- Instant Processing: A crypto payment processor streamlines the process and allows for seamless as well as swift transactions.
- Security: A crypto payment processor ensures secure transactions and prevents data breaches, fraudulent activities.
- Enhanced Customer Experience: A processor and gateway services ensures customers have a fast and convenient way to pay for merchants’ goods and services, thus enhancing CX.
Things to consider when selecting the best crypto payment processor for business
When choosing for the best crypto payment processor for business, there are a couple of things to consider before selecting for one:
- Diverse cryptocurrencies accepted: It is important to make sure the processor is capable of handling different types of crypto to attract more customers.
- Speedy processing times
- Fees: Be sure to conduct research into the fees (which might not all be listed in the general description) to avoid increasing overhead cost too much.
- Security: Make sure the processor has security measurements in place to safeguard every transaction.
XAIGATE – Top crypto payment processor for business
If you are looking for the best, secure, and affordable crypto payment processor for business, XAIGATE is an ideal choice. Being the top global crypto payment gateway processor, XAIGATE is a reliable and easy-to-use cryptocurrency payment gateway that offers a wide range of features and benefits. It is a good choice for businesses of all sizes that want to accept cryptocurrency payments from their customers. Some of our outstanding features include:
- Low processing fees
- No monthly maintenance cost
- Easy setup: User-friendly UX/UI
- Invoice services: XAIGATE assist clients with requesting payments and processing them through our blockchain API.
- Global payments: We accept crypto payments from all over the world.
If you choose us as your service provider, XAIGATE will be happy to assist you every step of the way! With our professional team of experts, you can rest assured our crypto payment gateway will be seamlessly and securely integrated into your business workflow.
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